Preparing Treasury Management for the Digital Age

August 4, 2021

Treasury Management is the partner that will help you embrace the future of digital transaction processing. Can you imagine a world without checks? It’s coming, and you need to prepare your organization for success by defining your strategic digital solutions.

Business is global today — whether you are buying a product from the Asia Pacific or a local wholesaler, selling to a customer in Europe, or working with a customer down the street, everyone needs to make transactions work across all time zones, continents, and cultures. How you define your customer credit policy and how you manage your supplier payment terms makes those transactions possible. Going digital will allow you to time your disbursements and offer robust receivables options, to maximize your cash flow.

Treasury Management For Disbursements

When you have established your digital Treasury Management services, those supplier payments will be easier to make. Maximizing your credit terms means timing those payments to take advantage of your payment terms, realizing discounts, and retaining the money in your checking account as long as possible. That can translate into serious dollars in your wallet.

Suppliers of goods and services can all accept electronic payment options, and that allows you to time your disbursement instead of counting on check float and the US Mail. Your Treasury Management bank can assist you with setting up recurring profiles for suppliers or making one-off payments as you need. When secure and guaranteed funds are required, a wire transfer, under dual control, can ensure your funds arrive as expected.

Treasury Management For Receivables

Better receivables data means clearing those open receivables with confidence and accuracy. Establishing an array of receivables options for your customers to pay you is key to defining your cash flow strategy. But don’t just get paid: get the remittance details critical for clearing the open receivable. Cash flow equals liquidity, and liquidity allows you to fund your payroll, pay suppliers, invest excess cash, and pay down any loan.

Treasury Management receivables services can include

• Lockbox services for check payments received in the mail
• ACH instructions for your customers to pay you and include remittance details critical for updating your system of record
• Online payments to allow customers access to your portal for fast and convenient payment processing

When you have a crisp receivables policy, your customers will benefit, able to pay when they want, where they want, and how they want. Clearing those open receivables in a timely fashion lets your customer free up credit with you and order again

Digital Information Reporting is Here

Take advantage of your Treasury Management bank’s online banking portal to access your account balances and manage your cash flow at the touch of your mobile phone, online in your office, or while you’re on the road. Authorization to your bank account information can be controlled by your designated administrator, allowing you to minimize your risk associated with information management and security. When you have online access to your account information, you can make purchase decisions and track spending to ensure your cash is ready to grow your business.

The Future of Digital Banking

Your Treasury Management banking team is here to establish best practices for liquidity management, information security and offer advice that will deliver your business results. Contact First Western Trust to learn more.